Crypto Market Update
The crypto market rallied this morning alongside falling rates and a weak DXY. Quarterly GDP growth aligned with market expectations at 1.4%, and durable goods orders slightly exceeded expectations. The most important piece of macro data this week will be Core PCE, due tomorrow. Among the majors, SOL -0.65% outperformed, rallying to $148 on the news of VanEck filing an ETF application. Meanwhile, ETH -0.02% is trading around $3,450, and BTC 0.83% is attempting to break through $62,000. Major outperformers in the top 100 include Core Strategy constituent MKR -0.78% , Solana DEX aggregator JUP, and KAS 8.03% , which likely benefited from the announcement that Marathon Digital has started to mine the PoW chain. Major equity indices are broadly higher, with IWM notably outperforming on the day.
VanEck Files for Spot Solana ETF
VanEck filed for a spot Solana ETF this morning, causing Solana’s price to surge by 7% shortly after the announcement, rising from $139 to about $148. VanEck’s Head of Digital Asset Research, Matthew Sigel, explained that SOL -0.65% , like BTC 0.83% and ETH -0.02% , functions as a digital commodity used for transaction fees and computational services on its blockchain. The SEC previously approved VanEck’s spot ETH -0.02% ETF and spot BTC 0.83% ETF, but they still await full regulatory approval. We doubt the imminent approval of VanEck’s Solana ETF under the current administration due to concerns over market surveillance, manipulation, and the SEC’s stance that Solana is a security. This is likely a bet on a regime change in November. Regardless, it will likely push the conversation around CME futures listing forward.
CLSK Acquires GRDI
CleanSpark (CLSK -0.37% ) has acquired Bitcoin mining firm GRIID Infrastructure (GRDI) for $155 million, purchasing all of its outstanding stock. This acquisition, which includes an exclusive hosting agreement for 20 MW of production power, aims to boost CleanSpark’s operational power to 100 MW by the end of the year and 400 MW by 2026. As part of the deal, GRDI stockholders will receive CleanSpark common stock, and CleanSpark will assume GRDI’s debt and obligations, including providing a $5 million working capital loan and a $50.9 million bridge loan. If we do not see a significant BTC 0.83% price rally soon, further consolidation in the mining space is possible, with some below-scale or overleveraged miners being acquired by larger ones.
Technical Strategy
Solana’s gains on the heels of a possible ETF launch in a new Administration have resulted in sharp 8% gains today, which is encouraging following the recent pullback down to test support near May lows. While more is needed technically to expect a low might be in place, Thursday’s SOL -0.65% lift should help prices show a bigger bounce up to $156 which is the first area of possible short-term resistance. Above $156 allows for a rally to $177, which marks the peak of the ongoing three-month triangle pattern since mid-March. Bottom line, the near-term trend remains bearish over the last month as part of a three-month neutral range-bound pattern. However, surpassing $156 could provide the first signs of optimism toward a potential retest of the highs of its three-month range. Overall, more needs to be accomplished before expecting a larger rally, but Thursday’s move is a welcome reversal following recent weakness.
Daily Important Metrics
All metrics as of 2024-06-27 12:00:20 All Funding rates are in bps Crypto Prices
All prices as of 2024-06-27 11:55:36 Exchange Traded Products (ETPs)
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